The Credit Score as a Marketing Tool: Exploring the Intersection of Finance, AI, and Consumer Behaviour

Abstract

The credit score which was traditionally regarded as the measure of financial soundness has become a complex tool which not only affects the lending policies but also affects the marketing policies. This essay examines this financial-artificial intelligence (AI) and consumer behavior interconnection and how the credit rating system could be deployed to personalize marketing processes and influence consumer relationships. The companies in collaboration with the AI-based analytics and the financial data will have the chance to better segment the consumers into groups, forecast their buying behavior, and make specific offers that would reflect the individual credit history. The article describes the moral, social, and financial consequences of the specified practice, and how the use of predictive modeling would ensure that the targeting will become more effective and how it will aid in the implementation of the already existing inequalities within the financial sector. The methodology will be a quantitative and qualitative analysis of the consumer data and marketing practice of the financial institutions and fintech companies respectively. Important discoveries reveal that the credit scores have become a proxy of behavioral data that can be of help to the marketers in directing the communication, product suggestions and promotion planning. Nevertheless, the use of AI raises concerns of transparency, data privacy, and the bias of the algorithms and requires a delicate balance between the innovation and consumer protection. In addition, the paper reports the attitudes and responses of the consumers towards credit-based marketing and the findings demonstrate complicated patterns of behavior depending on trust, financial literacy and sense of fairness. The credit scoring as part of the bigger socio-technical system can be understood better because it is a financial instrument as well as a facilitator of marketing as explained in this paper.